After the completion of the Cancun upgrade, the LRT track catalyzes the development of the Ethereum ecosystem.

After the Ethereum Cancun upgrade, the prices of Ethereum-related tokens have performed brilliantly. At the same time, modular projects and Layer 2 projects have been launched one after another, further boosting the market's optimism towards the Ethereum ecosystem. Liquidity re-staking (LRT) has gained attention due to the popularity of the EigenLayer project.

LRT is the "re-staking certificate" obtained by re-staking LST. The evolution process from ETH to LST to LRT is not a simple nesting but rather a result of the shared security of the Ethereum ecosystem and the demand for user returns. EigenLayer provides LRT with the underlying asset earning capability, while projects like Pendle provide application scenarios for LRT, jointly promoting the LRT narrative.

The current LRT project is mainly divided into three categories:

1. Liquid-LSD Restaking: Unified management of LST into external restaking protocols, users receive LRT. Such as KelpDAO, Renzo, etc.
2. Liquid Native Restaking: Projects that provide small ETH node services, such as Puffer Finance.
3. Protocols optimized on the basis of EigenLayer, such as SSV.

Promising projects include:

• KelpDAO: Supports multiple LSTs and provides AMM liquidity pools
• Puffer Finance: Lowering the re-staking threshold, emphasizing security.
• Ion Protocol: Build a lending platform supporting LST

The LRT track is still in its early stages, and project homogeneity is severe. It may develop in the following directions in the future:

• Combine with other DeFi protocols
• Enhance security using technologies like DVT
• Multichain expansion

Overall, LRT is a rapidly growing niche market, but the available funding is limited. It is expected that in the future, only a few leading projects will stand out. Investors need to be wary of the issue of layered risks.